The year 2020 has just begun and all of us surely must have some plans and resolutions. With finances being the top priority for most of us, there are some strict disciplines that need to be followed. Acting proactively and not procrastinating things to the deadline needs to be followed for the best results and stress-free management of assets. One of these practices is to keep a track of the financial deadlines and take necessary actions before they pass.
Here are 9 Financial Deadlines in 2020 That You Need to Know;
1. Tax – Saving Investments: March 31st, 2020
Most of us make investments to save some taxes on income. If you are also planning to make any such investments then the deadline is 31st March 2020 for you to invest. Also, planning your investments is quite important as investing is one thing and investing in tax-saving schemes is another. The need of the hour here is to invest in a tax-saving investment plan.
You have a benefit of Section 80C under which you can make investments of up to Rs. 1.5 lakhs which can save you Rs. 46,800 including cess if you come under the slab of 30% of the tax rate.
2. Submission of Investment Proofs with the Employer: As per Employer Rules
Just investing in tax-saving investments is not enough, you must submit the proof of these investments to your employer. This aids the employer in accessing the TDS deduction for you and avoids any extra tax that may get deducted due to over calculations.
The deadline to submit these documents is not fixed and varies with different companies. Hence, checking with your company HR is advisable to submit documents on time.
3. Deadline to file revised ITR and belated ITR: March 31st, 2020
If filing your Income Tax return is still on your list for the Financial Year 2018-19 then you have the deadline to file the belated ITR or your revised ITR by 31st of March 2020. Upon missing this deadline, you will lose your fundamental right to file ITR for the year 2018-19. Not only this, you will be charged with a fine of Rs. 10,000 for filing a belated ITR.
Also, if you wish to make any changes in your filed ITR for the Financial Year 2018-19, then 31st march is the deadline to revise your ITR, post this date you will not be allowed to do so.
4. Linking Aadhar and PAN Card: March 31st, 2020
31st March 2020 is the extended deadline to link Aadhar and PAN. Earlier the deadline to link your Aadhar and PAN Card was 31st December 2019. It is important to note that if you fail to link your Aadhaar with PAN by this deadline, the PAN will become inoperative.
5. Pradhan Mantri Awas Yojana (PMAY) Credit Subsidy Under Home Loan: March 31st, 2020
If you have availed a home loan under the Pradhan Mantri Awas Yojana (PMAY), you can claim your benefits until the 31st of March, 2020. The benefits are for the middle-income group who can avail of the credit subsidy on buying a home under the terms and conditions of the Pradhan Mantri Awas Yojana.
The benefits are subject to annual income and are divided into two categories for MIG-I and MIG-II. For a family to fall under the category of MIG-I, the annual income must be between Rs. 6 lakhs to Rs. 12 lakhs. This category can avail of a 4 percent subsidy.
For a family to fall under the category of MIG-II, the annual income must be between Rs. 12 lakhs and Rs. 18 lakhs. This category can avail of a 3 percent subsidy.
6. Pradhan Mantri Vaya Vandana Yojana (PMVVY) Investments for Senior Citizens: March 31st, 2020
Pradhan Mantri Vaya Vandana Yojana(PMVVY) is an excellent option to make an investment in a falling market. The plan is only for senior citizens and is essentially a pension scheme that promises a guaranteed payout of pension for 10 years at a given rate of interest or return.
Depending on the mode of investment, the rate of return can range anywhere between 8 % to 8.3%. This return rate is more promising and higher than the bank fixed deposits or post office fixed deposits.
There is a ceiling to this plan i.e. Rs. 15 lakhs. The scheme is open for subscription till 31st of March for senior citizens who wish to invest in a better returning scheme.
Senior Citizens who are looking to invest in this scheme have time till March 31, i.e., that is the date till when the scheme is open for subscription.
7. As per tax deduction date: Depositing TDS on rent
If you happen to live in a rented accommodation for which you have to pay a rent of more than Rs. 50,000 per month, then you must pay the rent after deducting tax on the source as per the Income Tax Act. A tenant must deduct taxes at a rate of 5% once per financial year. The tax deduction can be done either when the tenant leaves the house or before 31st March whichever is earlier.
The deducted TDS must be deposited with the government within a span of 30 days from the month-end in which deduction is done. If you do not submit the TDS on time with the government then penalty and interest will be levied.
8. June 15th onward: Collect TDS Certificates
In order to file ITR, you must collect your TDS certificates from your employer or bank if TDS is deducted from your salary. Form 16 is the TDS certificate that your employer needs to issue in your favor. Form 16 shows the details of tax deductions. Similarly, a form 16A is issued by the bank then shows the details of your salary and tax deductions.
The bank deducts taxes if the interest earned on your bank savings is more than Rs. 10,000. If you are a senior citizen, your interest limit is Rs. 50,000. The TDS certificates are issued June 15th onward.
9. July 31st: Deadline to file ITR for the financial year 2019-20
Upon completing all your tax-saving investments and winding up the ITR filing for the previous year if pending, you must focus on filing the ITR for the financial year 2019-20. Failing this deadline, you will be required to file a late ITR by 31st December 2020 with a penalty of Rs. 5,000. If you miss out on this chance, the deadline to file a belated ITR will be 31st March 2021.